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  • Published On : Jul 2022
  • Code : CMI885
  • Industry : Energy
  • Pages : 230
  • Formats :

The method of decommissioning of offshore oil & gas system is essential in terms of environmental safety issues as it has probable consequences on the marine environment, together with disposal of dangerous materials.

Global offshore decommissioning market was valued at US$ 6.3 Billion in 2021 in terms of revenue, exhibiting a CAGR of 5.9% during the forecast period (2022 to 2030).

Drivers

Offshore decommissioning includes the safe plugging of the matured and nonproductive wells in the earth’s surface together with the disposal of the offshore oil production equipment. This is a legal condition imposed under the Petroleum Act 1998 of the U.K. parliament. Decommissioning is a rapidly growing sector in the field of petroleum business, with potential opportunities and few risks. Major drivers of global offshore decommissioning market are infrastructure aging and maturing oilfields especially in North Sea and Gulf of Mexico. Moreover, decline in crude oil prices are estimated to augment growth of the offshore decommissioning market. Risk involved and high cost for decommissioning are some of the factors restraining the global offshore decommissioning market growth.

Among region, Europe accounted for the largest market share in the global offshore decommissioning market in 2021. The Europe offshore decommissioning market is majorly driven by presence of maturing oil and gas fields. Moreover, stringent government regulations in the European nations allowed the market players to carry out safe and efficient decommissioning activities, which has driven the offshore decommissioning market in this region. Several market players have undertaken steps such as new product launch and contracts signings to successfully carry out decommissioning on their oil fields.

Figure 1. Global Offshore Decommissioning Market Value Share (%), By Region, 2021

Offshore Decommissioning  | Coherent Market Insights

Market Restraints

Recent downturn in prices of oil is expected to be a key restraint to not only exploration and development activities of oil and gas but also decommissioning operations. Decrease in oil prices has caused a continued decline in cash inflow and rise or hike in debt levels could challenge the future of oil and gas industry.

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Offshore Decommissioning Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: US$ 6.3 Bn 
Historical Data for: 2017-2021 Estimated Year: 2022
Forecast Period 2022 to 2030 CAGR: 5.9% Forecast Period: 2022-2030
Geographies covered:
  • Region: North America, Latin America, Europe, Asia Pacific, Middle East & Africa
Segments covered:
  • By Service: Removal, Disposal, Remediation and Environmental Studies, Modelling and Sampling, Waste Mapping and Handling, Impact Assessment Program and Decommissioning Plan, HAZID (Hazard Identification Study) and Safety Screening, Removal of Equipment with NORM, Stress Analysis, Lifting and Rigging Procedures, Transportation and Sea Fastening
  • By Process: Project Management Planning and Engineering, Permitting Compliance Regulatory Compliance, Platform Preparation, Well Plugging and abandonment, Conductor Removal, Mobilization & Demobilization of Derrick Barges, Platform Removal, Pipeline and Cable Decommissioning, Material Disposal Site clearance
  • By Water Depth: Shallow, Deep Water, Ultra Deep Water
Companies covered:

Acteon Group Limited, Topicus Finan BV, AF Gruppen ASA, Tetra Technologies Inc., Allseas Group S.A., DeepOcean Group Holding B.V., John Wood Group Plc, and Exxon Mobil Corporation

Growth Drivers:
  • Decline in crude oil prices coupled with growing number of maturing oil & gas fields
  • Growing number of abandoned wells and presence of large mature offshore oilfields worldwide
Restraints & Challenges:
  • Recent downturn in prices of oil 

Market Trends

Figure 2. Global Offshore Decommissioning Market Value Share (%), By Water Depth, 2021

Offshore Decommissioning  | Coherent Market Insights

Based on water depth, shallow water contributed for the largest revenue share of around 66.0% in 2021 in the global offshore decommissioning market. Aging structures in the shallow North Sea and the U.K. continental shelf is likely to propel the demand for decommissioning in the near future. Structures in the North Sea are typically heavier and were not designed by keeping into account the decommissioning cost. Hence, decommissioning these heavier structures requires significant planning and equipment, which ramps up cost.

Recent Developments

  • In March 2021, Aker Solutions provides the products, systems and services required to unlock energy from sources such as oil, gas, offshore wind and CO₂ capture signed an agreement with Heerema Marine Contractors for decommissioning to the Heimdal and Veslefrikk fields, offshore Norway. The scope includes the reception, dismantling, and recycling of three offshore installations from the Heimdal and Veslefrikk fields.
  • In February 2021, Saipem is an Italian multinational oilfield services company and one of the largest in the world. awarded a contract by Qatargas, a contract for the offshore development of the North Field Production sustainability project. The scope includes the engineering, procurement, construction, and installation of various offshore facilities.
  • In January 2021, Boskalis is a Dutch dredging and heavylift company that provides services relating to the construction and maintenance of maritime infrastructure internationally. acquired all the shares of the subsea services business of Rever Offshores. Through this acquisition, Boskalis strengthens its current position in the subsea services market in Northwest Europe, Africa, and the Middle East. It has capabilities to serve both the traditional oil & gas market and the rapidly expanding offshore wind market.

Competitive Section

Major players operating in the global offshore decommissioning market include Acteon Group Limited, Topicus Finan BV, AF Gruppen ASA, Tetra Technologies Inc., Allseas Group S.A., DeepOcean Group Holding B.V., John Wood Group Plc, and Exxon Mobil Corporation.

The term “decommissioning” refers to the process of ending oil and gas operation at the offshore platform, keeping in account the risk and safety of the offshore environment. This process is carried out when oil production from the well decreases significantly. Offshore decommissioning must be done cost efficiently, as it comprises risks and uncertainties, creating challenges for decommissioning projects.

Factors such as rising number of maturing oil & gas fields especially in Gulf of Mexico and North Sea is predicted to drive growth of global offshore decommissioning market over the forecast period. However, high cost of decommissioning and ecosystem risk involved during the process is likely to hinder growth of the market in the near future.

Factors such as rising number of maturing oil & gas fields especially in Gulf of Mexico and North Sea is predicted to drive growth of global offshore decommissioning market over the forecast period. However, high cost of decommissioning and ecosystem risk involved during the process is likely to hinder growth of the market in the near future.

Market Dynamics

Among water depth segment, shallow water sub-segment is expected to gain significant market share in the global offshore decommissioning market over the forecast period. In 2021, the segment accounted for over 65.0% share in the global offshore decommissioning market in terms of revenue. Ageing structure in North Sea and Gulf of Mexico will undergo decommissioning activities during the forecast period.

Among regions, Europe held dominant position in the global offshore decommissioning market in terms of revenue share, in 2018. The region held for around 42.0% of the total revenue share generated across the globe. The regional growth is mainly derived by presence of maturing oil & gas fields.

Key features of the study:

  • This report provides an in-depth analysis of global offshore decommissioning market, and provides market size (US$ Billion) and compound annual growth rate (CAGR %) for the forecast period (2022-2030), considering 2021 as the base year
  • It elucidates potential revenue opportunity across different segment and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global Offshore Decommissioning market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, distribution strategies, key development and strategies, and future plans
  • Key companies covered as a part of this study include Acteon Group Limited, Topicus Finan BV, AF Gruppen ASA, Tetra Technologies Inc., Allseas Group S.A., DeepOcean Group Holding B.V., John Wood Group Plc, and Exxon Mobil Corporation.
  • Insights from this report would allow marketers and management  authorities of companies to make informed decision regarding future product launches, technology up gradation, market expansion, and marketing tactics
  • The global offshore decommissioning market report caters to various stakeholders in this industry including investors, suppliers, Offshore Decommissioning manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global offshore decommissioning market

Detailed Segmentation:

  • Global Offshore Decommissioning Market, By Decommissioning Service:
    • Removal, Disposal, Remediation and Environmental Studies
    • Modelling and Sampling
    • Waste Mapping and Handling
    • Impact Assessment Program and Decommissioning Plan
    • HAZID (Hazard Identification Study) and Safety Screening, Removal of Equipment with NORM
    • Stress Analysis, Lifting and Rigging Procedures
    • Transportation and Sea Fastening
  • Global Offshore Decommissioning Market, By Process :
    • Project Management Planning and Engineering
    • Permitting Compliance Regulatory Compliance
    • Platform Preparation
    • Well Plugging and abandonment
    • Conductor Removal
    • Mobilization & Demobilization of Derrick Barges
    • Platform Removal
    • Pipeline and Cable Decommissioning
    • Material Disposal Site clearance
  • Global Offshore Decommissioning Market, By Water Depth :
    • Shallow
    • Deep Water
    • Ultra Deep Water
  •  Global Offshore Decommissioning Market, By Region:
    • North America
      • By Country:
        • U.S.
        • Canada
    • Latin America
      • By Country:
        • Brazil
        • Mexico
        • Argentina
        • Rest of Latin America
    • Europe
      • By Country:
        • Germany
        • U.K.
        • France
        • Italy
        • Spain
        • Russia
        • Rest of Europe
    • Asia Pacific
      • By Country:
        • China
        • India
        • Japan
        • Australia
        • South Korea
        • ASEAN
        • Rest of Asia Pacific
    • Middle East & Africa
      • By Country/Region:
        • Middle East
        • Africa
  • Company Profiles
    • Acteon Group Limited,
      • Company Overview
      • Product Portfolio
      • Key Strategies
      • Recent Development
      • Future Plans
    •   Topicus Finan BV
    •  AF Gruppen ASA
    •  Tetra Technologies Inc.
    •  Allseas Group S.A.
    •  DeepOcean Group Holding B.V.
    •  John Wood Group Plc
    •  Exxon Mobil Corporation.

“*” marked represents similar segmentation in other categories in the respective section

Frequently Asked Questions

Global offshore decommissioning market was valued at around US$ 6.3 Billion in 2021.
Decline in crude oil prices coupled with growing number of maturing oil & gas fields are some of the major factors that are expected to propel growth of the market over the forecast period.
Stringent government regulations in the European nations have allowed the market players to carry out safe and efficient decommissioning activities, which has driven the offshore decommissioning market in this region is the key trend in the global offshore decommissioning  market.
 Recent downturn in prices of oil is one of the major factor that is expected to hamper growth of the market over the forecast period
Major players operating in the market include Acteon Group Limited, Topicus Finan BV, AF Gruppen ASA, Tetra Technologies Inc., Allseas Group S.A., DeepOcean Group Holding B.V., John Wood Group Plc, and Exxon Mobil Corporation. 
The market is estimated to grow at around 5.9% CAGR in the forecast period (2022-2030).

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